A birds-eye view of the University of Iowa campus. CREDIT UIOWA
By CBJ News Staff
news@corridorbusiness.com
As the University of Iowa continues to assess the major budget impact from the COVID-19 pandemic, President Bruce Harreld warned in a letter to employees June 8 that salary reductions, furloughs and permanent layoffs may be in the future.
In the letter obtained by the CBJ, Mr. Harreld reiterated the UI’s projection of $70 million in losses through August due to the shuttering of classes and university facilities, and more than $100 million at UI Health Care as protective measures ramped up and elective surgeries were canceled. While the UI received more than $16 million in federal CARES Act funding, and UIHC $30 million, “it is far short of what is needed to make the university whole,” Mr. Harreld wrote.
Acknowledging that the financial impact of the pandemic “will be different for each area,” Mr. Harreld said that the “difficult decisions” ahead will be made by the university’s colleges and central service units as they determine their annual budgets. Some self-sustaining units at the institution facing steeper losses, including UI Athletics and University Housing & Dining, will continue reviewing budget and enrollment projections to determine appropriate staffing levels, while UI Health Care will issue more specific guidelines for its employees in the coming weeks, he noted.
Employees lacking meaningful work are being asked to register for a temporary redeployment pool and accept reassignment when offered, use paid vacation leave or comp time, or request unpaid leave. Supervisors may also consider hiring and salary freezes, salary reductions, temporary layoffs or furloughs, or permanent layoffs, according to the letter.
Mr. Harreld closed the letter by pledging to be “forthright about the challenges we face and the difficult decisions ahead,” adding that “If we focus on our core missions of education and research, placing the success of our students and compassion for our people at the forefront of every decision, we create an opportunity to differentiate our university as a national leader.”
The University of Iowa is the largest employer in the state of Iowa, with more than 30,000 employees, while UI Health Care counts 10,288 employees, according to the 2020 CBJ Book of Lists. CBJ
